VAT on take-away food and drink

3 days, 2 hours ago by Oliver Atkinson

Food supplied in the course of catering

You must always standard-rate food supplied in the course of catering, including hot take-away food.

Food not supplied in the course of catering

Although the supply of most food and drink of a kind used for human consumption is zero-rated, there are exceptions. Some items are always standard rated, and these are explained in Notice 701/14 Food here. Other supplies are standard rated because they are made in the course of catering.

What is the liability of take-away food and drink?

Hot take-away food that has been heated for the purposes of supplying it hot is always standard-rated. Cold take-away food and drink is zero-rated, provided it is not of a type that is always standard-rated (such as crisps, sweets, beverages and bottled water). Hot drinks are standard rated.

Example of items that are always standard rated are:

• Hot drinks (eat-in and takeaway)
• Hot food where an ingredient is cold (eat-in and takeaway)
• Burgers (burger in cold bun)
• Meat sandwiches (hot meat between cold bread slices)
• Any non-alcoholic beverages for consumption on premises
• Any ready-to-eat catering food and drinks supplied for consumption off premises.

Example of items that are Zero rated include:

• Cold food and drinks purchased for takeaway (excl. above items that are always standard-rated)
• Seasonings and condiments
• Meals requiring further preparation by the customer (e.g. reheating pre-cooked food, arranging on a plate)

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